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    11 views5 pages

    Case Analysis - Price Waterhouse

    Uploaded by

    Rhythm Katyal

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    Law an Practice: A Digital eB'00k E A AA wah aA a Feedback Bookmarks Newsletters Subsc be DEMO Register Login [“iisonear Seach] [0 TM: Hioniohts share: KE | [Bpconing STR ‘Anticle Section Home Bl Articles Bi Income Tax & C.A. DEV KUMAR KOTHARI EI Exports BI This = = Previous Noxt = wvold casual and careless Learning from case of Price Waterhouse Coopers (P) Ltd- avoid casual and careless. approach- be more careful ‘Submit Now Article Book mail) rie pape Leaming from case of Price Waterhouse Coopers (P) Ltd-avold casual and careless approsch- bbe more careful By: C.A. DEV KUMAR KOTHARI November 20,2012 A Articles by: CA. DEV KUMAR KOTHARL View Profle Penalty Liberal view taken by the Supreme Court in spe‘ ‘considered as a guide to be careless. circumstances: should not be ‘Tne Supreme Court has taken liberal view in special circumstances and held that inthe given case and Its pecular facts, penalty was not justified because there was no wil fll concealment of income or fumishin of inaccurate particulars, butinadvertent mistake took place wile computing income in hich a eisallowance for gratuity provision was not made though there was disclosure in ‘accompanying documents tke tax audit repor (TAR). Thus the Supreme Cour reversed concurrent findings ordos and judgmns ofall authoritos and court below. However, this should not be considered as a freedom tobe careless, make mistakes, take @ chance to get a deduction allowed, though not allowable and then plead a sly mistake If and when caught Judges are also human being Judges are also human being therefore, judgments also depend on various creumstances affecting thinking and mood of judges while reviewing documents, orders and judgments of lower authorves and Courts, hearing arguments of concerned partes, and various other factors which can have some effect, ‘on thinking process, ceagoning, analysis, and oulcome inform of judgment ti sad and teamed that ‘the counsel appearing before the court must have good skis to go with mood of judges ane also must bo capable to change thinking process and mood of judges so that desirod emphasis fs placed on favorable factors and unfavorable factors are not taken seriously or aa ignored, while taking oveal pletute of factual and legal poston atthe time of drawing contusions and rendering judgment In cage of PWCC, the lower authortes and courts took view that an asceseee Ike PWCC cannat be ‘expected to claim deduction of gratulty which was not funded in a recognized fund and claiming tho ame amounted ta furnishing of inaccurate particulars, pariculaly because disallowance was pointed ‘out the Tax Aust Report (TAR) \whoreas the Supreme Court took view that even assesses ike PWCC could err and there can bo a ‘stake. The Supcome cour took his ina favorable fashion for the reason that assessee had Cisclosed unallowable amount in TAR, and therefore there was information provided about disalowable ‘amount and nor-

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